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Machine tool manufacturers are especially well-poised in the manufacturing mix. Everything from the humble household hammer to the complex equipment used in the automotive and aeronautics industries represents a manufactured tool.
According to the National Tooling and Machining Association (NTMA), "The plight of American manufacturing has been greatly exaggerated."
The National Association of Manufacturers (NAM) supports NTMA's optimism. According to NAM's fact sheet, U.S. manufacturing accounts for nearly 12% of our nation's output and employs 8.51% of our workforce.
Some of the top sectors experiencing growth include aerospace, control instruments and motor vehicle manufacturing.
Today, we are going to delve in to specific trends based on information gathered by MNI, compiler and publisher of the industrial data that powers IndustryNet.
MNI’s Machine Tool Manufacturing U.S. Market Analysis
According to MNI’s 2019 analysis of the more than 1,000 U.S. machine tool manufacturers in its database, the industry is faring quite well both domestically and internationally. This particular report will focus on the industry as a whole and provide greater detail regarding the latest trends in sales, job growth and regional markets.
The 1,049 machine tool manufacturers in MNI’s extensive database employ 35,193 individuals, a year-over-year employee growth of 2.36%. Sales average over $40 billion annually, a year-over-year increase of more than 1%.
While 3% of the companies reported a sales increase, only 1% of U.S. manufacturers did so. This statistic reflects the overarching viewpoint of both the NTMA and the NAM.
MNI’s Machine Tool Manufacturing Global Market Analysis
Globally, the picture is even brighter. American machine tool manufacturing has long been known for the quality of its products. The NAM notes that U.S. manufactured goods play a large role in the American economy due in no small part to their exports. Other nations consumed over $1 billion worth of exported American manufactured goods in 2018.
MNI's research confirms that the machine tool manufacturing industry represents the lion's share of these exports. Fully 53% of the U.S. machine tool manufacturers in its database play in the global marketplace. In stark contrast, only 29% of U.S. manufacturers in general distribute internationally.
IndustryWeek attributes this global uptick to two main factors. The first is the pent-up demand in Europe following a slump in that market over the past five or six years. This slump was caused primarily by immigration issues and the political upset following Brexit.
The second trend represents simple demographics. As the manufacturing industry workforce ages, companies will expand capital investments rapidly in order to attract and retain new workers entering the field. As machine tool manufacturing has become increasingly reliant on technology over the past several years, so have the tools that it produces.
MNI’s Machine Tool Manufacturing U.S. Regional Market Analysis
Regionally, the Midwest is prime real estate for machine tool manufacturing in the United States, housing 539 companies, or 51% of the total number of companies.
The Northeastern United States comes in a distant second, with 210 companies representing 20% of the total. The South and the West are a close third and fourth, with 15% and 13% of machine tool manufacturers respectively.
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